Nickel 28 Releases Ramu Q4 and Full Year 2023 Operating Performance
13 Februar 2024 - 1:00PM
Business Wire
Nickel 28 Capital Corp. (“Nickel 28” or the
“Company”) (TSXV: NKL) (FSE: 3JC0) is pleased
to provide an update on the strong operational results for the
quarter ending December 31, 2023, and for the full year of 2023 for
the Company’s largest asset, being its interest in the Ramu
Nickel-Cobalt (“Ramu”) integrated operation in Papua New
Guinea. Nickel 28 currently holds an 8.56% joint-venture interest
in Ramu which is operated by Metallurgical Corporation of
China.
Full Year and Q4 2023 Ramu Highlights:
- Ramu Q4 2023 nickel production of 7,825 tonnes, representing an
8% decrease from the same period last year, mainly due to unplanned
outages as a result of earthquake events.
- Full year production of 33,604 tonnes of contained nickel in
Mixed Hydroxide Precipitate (“MHP”), which was a 2% decrease
from 2022 and represented 103% of nameplate capacity.
- Ramu Q4 2023 cobalt production of 706 tonnes and full year
production of 3,072 tonnes of contained cobalt in MHP, essentially
flat from 2022 due to higher cobalt grade in ore feed.
- Ramu Q4 2023 nickel sales of 8,298 tonnes and full year sales
of 34,122 tonnes of contained nickel.
- Ramu Q4 2023 cobalt sales of 755 tonnes and full year sales of
3,086 tonnes of contained cobalt.
- LME average nickel price of US$7.81/lb. in Q4 2023,
representing a 32% decrease from the same period last year. The
full year LME nickel price averaged US$9.76/lb., a decrease of 16%
over the 2022 average of US$11.61/lb.
- Fast Markets average cobalt price of US$15.07/lb. in Q4 2023,
representing a 34% decrease from the same period last year. Full
year cobalt prices averaged US$15.76/lb. compared to US$30.75/lb.
for 2022 representing a 49% decline.
- Full year 2023 cash costs were US$3.26/lb. of nickel produced,
net of byproduct credits, in MHP which consistently ranks as one of
the lowest cash costs for an integrated High Pressure Acid Leach
nickel operation.
“2023 saw a massive increase in production from Indonesia, which
negatively impacted nickel and cobalt prices globally. However,
given Ramu’s reputation as a reliable and consistent supplier of
MHP, along with our strong position as one of the world’s lowest
cost MHP producers, Ramu once again delivered strong results,”
stated Nickel 28’s CEO, Anthony Milewski. “Our analysis indicates
that MHP availability from Indonesia increased by almost 150% in
2023 which has established MHP as the preferred feed stock of EV
battery producers. We see MHP becoming a more important raw
material going forward with continued pressure on costs. In this
respect, Ramu is well positioned to remain profitable and weather
the current commodity price cycle. In 2024, we expect to take a 30
day shutdown in September to undertake some capital improvement
projects, which are expected to increase Ramu’s production capacity
and should put us in a good position going into 2025. As the year
progresses, we will update the market as to expected production
guidance for 2024,” continued Mr. Milewski.
Ramu’s unaudited operating performance for the period is
presented below (along with comparison to prior years).
2022
2023
Q4
YTD
Q4
YTD
Ore Processed (dry kt)
838
3,488
858
3,599
MHP Produced (dry tonne)
20,933
85,538
19,414
84,036
Contained Nickel (tonne)
8,480
34,302
7,825
33,604
Contained Cobalt (tonne)
702
2,987
706
3,072
Nickel Capacity Utilization (% of
design1)
104%
105%
96%
103%
MHP Shipped (dry tonne)
32,987
93,330
20,735
85,514
Contained Nickel (tonne)
13,613
37,250
8,298
34,122
Contained Cobalt (tonne)
1,150
3,280
755
3,086
Cash Cost Actual (2)
$4.61
$3.37
$3.34
$3.26
Note (1) Ramu design capacity of 32,600
tonne/year of contained Ni
Note (2) Actual Cash Cost net of byproduct
credit
- The foregoing production figures have not been audited and are
subject to change. As the Company has not yet finished its fiscal
year-end annual close procedures and the annual audit of its
financial statements for the period ended January 31, 2024, is not
complete, the estimated financial information presented in this
press release is preliminary, subject to final fiscal year-end
closing adjustments, and may change materially. The information
presented above has not been audited by the Company's auditor,
should not be considered a substitute for audited financial
statements, and should not be regarded as a representation by the
Company as to the actual financial results.
About Mixed Hydroxide Precipitate
The Ramu High Pressure Acid Leach (“HPAL”) operation in Papua
New Guinea is one of a handful of nickel operations that produces
MHP product and one of only two that has been commissioned in the
last 20 years that consistently exceeds design capacity. Ramu MHP
contains approximately 40% nickel, 4% cobalt on a 60% wet basis
(the balance being moisture), making it a high value nickel
intermediate product that can be converted to a multitude of
finished products. MHP is currently the most coveted feedstock in
the manufacturing of nickel sulphate and cobalt sulphate products
for the lithium-ion battery industry.
About Nickel 28
Nickel 28 Capital Corp. is a nickel-cobalt producer through its
8.56% joint-venture interest in the producing, long-life and
world-class Ramu Nickel-Cobalt Operation located in Papua New
Guinea. Ramu provides Nickel 28 with significant attributable
nickel and cobalt production thereby offering our shareholders
direct exposure to two metals which are critical to the adoption of
electric vehicles. In addition, Nickel 28 manages a portfolio of 10
nickel and cobalt royalties on development and exploration projects
in Canada, Australia and Papua New Guinea.
Cautionary Note Regarding Forward-Looking Statements
This news release contains certain information which constitutes
‘forward-looking statements’ and ‘forward-looking information’
within the meaning of applicable Canadian securities laws. Any
statements that are contained in this news release that are not
statements of historical fact may be deemed to be forward-looking
statements. Forward-looking statements are often identified by
terms such as “may”, “should”, “anticipate”, “expect”, “potential”,
“believe”, “intend” or the negative of these terms and similar
expressions. Forward-looking statements in this news release
include, but are not limited to: statements and figures with
respect to the operational and financial results of the Ramu
project; statements related to the production impact of the capital
improvement projects; and statements with respect to the business
and assets of the Company and its strategy going forward. Readers
are cautioned not to place undue reliance on forward-looking
statements. Forward-looking statements involve known and unknown
risks and uncertainties, most of which are beyond the Company’s
control. Should one or more of the risks or uncertainties
underlying these forward-looking statements materialize, or should
assumptions underlying the forward-looking statements prove
incorrect, actual results, performance or achievements could vary
materially from those expressed or implied by the forward-looking
statements.
The forward-looking statements contained herein are made as of
the date of this release and, other than as required by applicable
securities laws, the Company does not assume any obligation to
update or revise them to reflect new events or circumstances. The
forward-looking statements contained in this release are expressly
qualified by this cautionary statement.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. No securities regulatory authority has
either approved or disapproved of the contents of this news
release.
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version on businesswire.com: https://www.businesswire.com/news/home/20240213200674/en/
Investor: Nickel 28 Investor Relations Tel:
289.314.4766 Email: info@nickel28.com
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